Customer Value in the Now Economy

Customer Value in the Now Economy

  • Building an eBay Business – A Marketing Playbook by Art Weinstein* [51]
    by noreply@blogger.com (Art Weinstein) on December 23, 2025 at 5:08 pm

          If you do build a great experience, customers tell each other about that. Jeff Bezos eBay is an internet pioneer founded in 1995. Over the past 30 years, this Silicon Valley giant created a huge digital marketspace with more than 130 million active buyers worldwide and $10 billion in revenue. While eBay does e-commerce in almost every country in the world, about half of their business is from the U.S. Do you have an interesting product to sell or unique market niche to exploit? Perhaps, you want to re-home some extra cool stuff around the house or turn a favorite hobby into a side gig to generate a second income? eBay offers incredible flexibility whether you want to work just a few hours a week to earn extra income or quit your day job and run your own small business.My Interest in eBay         As a marketing professor, I have taught courses in Customer Value and Marketing Strategy for more than 30 years. Previously, I was a marketing researcher and ran a Small Business Development Center.  I have written 8 books and 135 scholarly papers/case studies on customer-centric marketing practices. I spent most of my academic career researching and writing about technology and entrepreneurial firms and have consulted for some of the largest tech companies in the world.I have carefully studied the eBay business model, and as a consumer, I made occasional purchases for hard-to-find items from various eBay sellers. As I have a considerable amount of music CDs, boxed sets, vinyl, and  DVDs; one-of-a-kind rock band memorabilia; sports and other collectibles, I thought eBay might be an excellent outlet to share some of my excess inventory with buyers that have similar interests. That said, I pursued this “side hustle” over the past year. This assumption was validated as I have sold more than 215 items to highly satisfied customers in 39 states. eBay has recently named me a Top-Rated Seller as I have a 100% customer feedback score with 155 five-star reviews. Some of my interesting recent sales include an Alaskan mini-totem pole, a genuine hand-made wooden Australian boomerang, Asia (rock band) framed song lyrics, Beatles 45’s, chess pieces bookends, George Carlin DVDs, Jacques Cousteau painting, New York Mets team sets of baseball cards, miniature Las Vegas slot machine toy, Tom Brady hoodie, Tutankhamun coffee table book, and various U.S. mint proof coin sets. Marketing Ideas and InsightsI ramped up my knowledge of all facets of e-commerce and analytics via eBay’s impressive and easy-to-use sales platform. As a new seller with deep marketing acumen, I developed a viable and enjoyable hobby business. Along the way, I learned many business insights which I am pleased to share with others thinking about getting involved with this organization as an independent contractor. Below is a work-in-progress A-Z perspective. You will likely find many of these marketing tips very useful should you choose to work with eBay or pursue other e-commerce ventures. Artificial intelligence (AI)BundlingCompetitive analysisDiversifyeBay communityFeedbackGet frequent updates via the appHobby or business?Inventory controlJump in with both feetKeep at itLogistics managementMetrics mattersNew product developmentOffers (managing)Promote/advertise your itemsQuick customer serviceRegular communication with prospects/buyersSegmentation, targeting, and positioningTiming and seasonalityUnderstand your customer’s needs/wantsVarietyWeekend effecteXamine what works, doesn’t workYes, be positive!Zero in on your niche The A to Z eBay Marketing Playbook – Part 1 (A-F)An expanded version of the above outline is being developed into a guide called “The A to Z Playbook for Building an eBay Business – 78 Winning Entrepreneurial Strategies.” Here’s an advance look at the first 6 concepts/18 strategies:     > Artificial Intelligence    AI has been called the most significant human invention since electricity. The power of AI can solve world problems in medicine or lead to societal destruction via military warfare. As a red-hot marketing tool, one useful application is writing ad copy which is essential in listing items on eBay. The company provides an excellent AI tool for this purpose which facilitates writing detailed, informative item descriptions. ·      Use the AI tool, but use it cautiously. It provides an instantaneous and workable draft that is creative and covers most essential product information. ·      From my experience, I found the AI-generated ad copy to be about 85% effective as factual errors are often made and some key selling points are neglected. Hence, a revision is necessary. ·      AI works for most items but rare and one-of-a-kind pieces will require the old-fashioned approach, good story telling without an AI assist. Ø Bundling Bundling means to package 2 or more units as a single item with a discounted selling price. This strategy can work effectively if you are selling low-priced items. Buyers appreciate the opportunity to buy multiple related items at a reduced price. Also, they only need to pay the shipping fee once. ·      I have found bundling works extremely well for the music products I sell. Rather than offering a single CD at $10, I may package 3 CDs by a single artist at $25. ·      You can design multiple bundle packages and reconfigure based on market demand – i.e., add, revise, or delete to your online store inventory. ·      At times, I’ll use an unbundling approach. For example, PROG magazine often includes beautiful, four-color postcards of the featured artist that month in the 100 + page magazine. I have sold these items separately to interested buyers. Ø  Competitive Analysis eBay customers are smart and well informed about pricing for the merchandise offered. It is critical for the eBay seller to be even more knowledgeable about competitive options and prices. ·      Use the eBay site as your main tool to shop the competition. If you cannot beat their prices find other ways to offer added value (e.g., free or discounted shipping, use on-site advertising to reach new prospects, etc.)  ·      Go to Amazon, Etsy, and other online sellers, as needed.   ·      Use specialized websites to research prices. For music products, I have found sites such as   discogs.com and valueyourmusic.com to be helpful. Ø  Diversify  Financial planners urge their clients to diversify their investments and not rely on a single stock. This is great advice for eBay sellers, too. Start your venture with multiple, related product lines to maximize your chance for business success. ·      Choose a main product line and add the most inventory in this category. Currently, my top line are music products – mostly CDs and boxed sets – which accounts for nearly half of my sales. ·      Add a small number (perhaps, 2 to 4) of additional revenue lines. My other areas of emphasis are books/magazines, rock ‘n roll memorabilia, sports collectibles, and commemorative coins. ·      Test market potential new product opportunities. I am currently exploring stamps. Ø eBay Community  The eBay business model offers a unique infrastructure. Devotees can win (buy) or sell almost anything. Trading on eBay is characterized by low selling costs, vast selection, motivation to engage in repeated transactions, and technological empowerment. To maximize your success, master the platform and all of its powerful features. In particular, get to know the Home Page, My eBay, Messaging,  Performance Measures, and Selling Tools. ·      The search box gives you a quick overview of what other vendors are selling and their prices. ·      Take advantage of eBay’s seller suggestions and training materials. ·      Create and continuously refine your eBay store. Ø Feedback  Generating excellent feedback from buyers should be a seller’s priority. Prospective customers carefully review detailed seller ratings (on a 5.0 scale) with respect to product description accuracy, shipping costs, speed of delivery, and communication. Customers are encouraged to leave comments for sellers and most of them do that. ·      Sellers should briefly respond to buyer comments to thank them for their business and personalize the transaction. ·      Enclose a packing slip with each purchase with a generic “we look forward to doing business with you again on eBay” message followed by a handwritten personalized note (a few words will suffice). ·      Deliver 100% satisfaction for each customer and every purchase. Briefly reply to every consumer that leaves comments. This will lead to repeat business and demonstrate your commitment to excellence for prospective buyers. Questions/Action Items1. If you sell on eBay (or other e-commerce platforms), what strategies/tactics work best for you?    2. Comment on one or more of the guidelines in the Marketing Playbook: AI, bundling, competitive analysis, diversification, eBay community, and feedback.3. What are some great niche opportunities for success on eBay, other online platforms?   * Art Weinstein, Ph.D. is the blogmaster of Customer Value in the Now Economy. He may be reached at artweinstein9@gmail.com.         

  • How Inbound Marketing Shapes Gen Z Behavior – A Strategic Perspective by Fabienne Cadet, Suri Weisfeld-Spolter & Luis Casas * [50]
    by noreply@blogger.com (Art Weinstein) on June 27, 2025 at 8:56 pm

     In an era where consumers actively shape brand narratives, inbound marketing has emerged as a critical strategy for engaging today’s most influential demographic: Generation Z. This cohort, born roughly between 1997 and 2012, has grown up immersed in digital environments and expects brands to meet them on their terms—authentically, responsively, and within vibrant online communities.In our recent empirical study, we investigate how three core inbound marketing practices—Visibility Management, Active Listening, and Community Building—influence purchase intention and word-of-mouth intention (WOMI) among Gen Z. Framed within the Theory of Planned Behavior (TPB), the research provides valuable insight into the mechanisms through which inbound marketing affects consumer decisions.The Inbound Marketing FrameworkInbound marketing is a pull strategy that attracts consumers through relevant content and meaningful digital engagement rather than interruptive advertisements. This study formalizes inbound marketing around three operational dimensions:Visibility Management (VM) – Ensuring a brand appears prominently in digital search results and online spaces.Active Listening (AL) – Responsively engaging with customer questions, feedback, and concerns on social media and review platforms.Community Building (CB) – Fostering brand-centered online communities that encourage consumer participation and dialogue.Key Research FindingsOur study found that all three inbound marketing practices had significant positive effects on both purchase intention and WOM intention, with Active Listening showing the strongest influence overall. Notably, WOMI emerged as a critical mediating variable, meaning a consumer’s willingness to recommend a brand often preceded and predicted their willingness to purchase.This aligns with the TPB framework, where behavioral intentions are shaped by:Attitudes (Do I like or trust the brand?),Subjective norms (What do others think?),Perceived control (Is the brand accessible and responsive?).Real-World ApplicationsLet’s explore how these dimensions play out in practice and what consumer behavior students—and future marketers—can learn from them.1. Visibility Management: Be Where Gen Z SearchesIn the study, high visibility (e.g., a top result in a search engine) increased both WOM and purchase intentions. This underscores the importance of search engine optimization (SEO) and platform-specific search strategies.Example:Consider how Chipotle dominates both Google search results and TikTok trends. Their SEO strategy is coupled with influencer campaigns that create viral content—ensuring that when Gen Z searches for “best burrito” or browses food content, Chipotle shows up.Strategic Implication:Marketers must prioritize being “discoverable” through search and social algorithms. Visibility is not passive; it is engineered.2. Active Listening: Turn Feedback into TrustThe study found active listening—timely and meaningful responses to consumer feedback—to be the most powerful predictor of both WOMI and purchase intention.Example:Brands like Glossier and Duolingo are masters of this. Glossier responds to customer comments on Instagram with personalized messages, while Duolingo’s humorous, fast responses on TikTok have made their owl mascot a fan-favorite. These interactions build trust and encourage advocacy.Strategic Implication:Customer service is no longer confined to email or call centers. Brands must invest in real-time social listening tools and train community managers to respond authentically and promptly. In the eyes of Gen Z, being heard is being valued.3. Community Building: Belonging Drives BehaviorThe study confirms that Gen Z’s desire to be part of something bigger translates into stronger loyalty when brands foster community.Example:LEGO’s Ideas platform allows fans to submit and vote on new product ideas. By inviting users into the innovation process, LEGO transforms customers into co-creators. Similarly, Nike’s Run Club app creates a sense of identity and shared purpose among athletes.Strategic Implication:Community building isn’t limited to social media groups. It includes branded apps, forums, and shared storytelling. It requires a shift in mindset—from broadcasting messages to facilitating dialogue.Word-of-Mouth is the BridgeOne of the study’s most important findings is that word-of-mouth intention acts as a bridge between inbound marketing and purchase behavior. In fact, the indirect effect of inbound practices on purchase intention—through WOMI—was often stronger than the direct effect.This is especially relevant in a Gen Z context, where peer influence and authenticity trump traditional advertising. According to the research, if a brand can get young consumers to talk about them, they are far more likely to buy from them.Example:Starbucks’s use of seasonal drinks like the Pumpkin Spice Latte isn’t just a product launch—it’s a conversation starter. Fans share their orders, post themed photos, and engage in a ritual that reinforces community identity and promotes organic reach.Marketing with IntegrityWe note some ethical concerns, particularly around data privacy and manipulation. Gen Z is digitally savvy but deeply skeptical of brands that exploit their data or use AI-driven targeting in manipulative ways.Key Point:Ethical inbound marketing must prioritize transparency, offer opt-in participation, and empower consumers with clear data control. Brands that violate these principles risk reputational damage and alienation.Takeaways:To influence Gen Z, brands must be searchable, responsive, and community-oriented.WOM intention is the engine driving purchase behavior in today’s social economy.Ethical, transparent engagement is not optional—it is a core expectation.As consumer behaviors evolve in digital spaces, marketers must evolve with them—not by shouting louder, but by listening better.* Based on “The Impact of Inbound Marketing Practices on the Young Consumer’s Purchase and Word-of-Mouth Intention” by Fabienne Cadet, Suri Weisfeld-Spolter and Luis Casas (Published in Young Consumers, 2025). For further information, contact Dr. Cadet [f.cadet@nova.edu] or Dr. Weisfeld-Spolter [sw887@nova.edu]. 

  • How AI is Elevating Marketing & Customer Value – From Insights to Impact by Fernanda Almada* [49]
    by noreply@blogger.com (Art Weinstein) on March 11, 2025 at 12:57 am

    Artificial Intelligence (AI) is reshaping industries worldwide, and marketing is at the forefront of this transformation. With AI-powered tools, businesses can now analyze consumer behavior more effectively, personalize marketing campaigns, streamline workflows, and make data-driven decisions at a speed that was once unimaginable.In a previous article on this blog, I explored how businesses can identify their ideal customers and develop strategies to engage them.Customer Value in the Now Economy: Know Your Customer to Bulletproof Your Marketing Strategy by Fernanda Almada * [35]Today, AI is making it possible to refine those strategies even further. By processing vast amounts of consumer data, AI helps companies gain deeper insights into pain points, make more accurate behavior predictions, develop more relevant products and services, and create highly engaging and effective marketing campaigns.AI’s Role in Modern MarketingMarketing has always relied on consumer insights to shape campaigns, messaging, and product positioning. However, traditional methods of gathering consumer insights, such as surveys and focus groups, can be time-consuming and limited in scope. AI now enables companies to automate data analyses, generate insights in real time, and quickly create content that resonates with specific audiences.For instance, AI-powered tools can analyze social media trends, customer feedback, and purchasing patterns to help marketers make informed decisions. These tools are also being used to optimize digital advertising, automate personalized email marketing, and improve SEO strategies.Beyond automation, AI has become a strategic asset in marketing, helping businesses test creative concepts, refine messaging, and measure the effectiveness of campaigns at a much larger scale than before.How Leading Brands Are Using AI to Stay AheadMany global brands are already integrating AI into their marketing and consumer research strategies. By doing so, they are not only gaining a competitive edge but also reshaping how industries approach innovation and decision-making.Estée Lauder, a global luxury beauty brand, is pioneering AI-driven marketing and consumer research. The company partnered with OpenAI to develop over 240 custom GPTs designed to enhance internal workflows, improve market analysis, and develop new products based on consumer insights. Custom GPTs are AI models tailored to a company’s specific needs, trained on proprietary data to generate more relevant insights, automate tasks, and enhance decision-making while maintaining data security.With AI, Estée Lauder can analyze emerging beauty trends, track shifting consumer preferences, and predict which products will resonate with different demographics. These AI-driven insights help the company create more targeted and innovative beauty products, staying ahead of market trends. Another example is Zappi, AI-powered consumer insights platform. According to Steve Phillips, Founder & Chief Innovation Officer at Zappi, AI is revolutionizing market research by automating the entire process—from data collection and analysis to reporting and decision-making. Zappi has integrated AI across all stages of research, allowing brands to generate insights at unprecedented speed and accuracy.One of the biggest developments in this space is the rise of AI-powered agents. Traditionally, market research firms would provide companies with consumer insights in the form of reports, leaving it up to marketing teams to determine the next steps. Now, with AI, businesses can use AI agents to generate product ideas, refine ad campaigns, and optimize messaging based on real-time consumer feedback.According to Phillips, AI significantly reduces the time needed to develop and test marketing strategies. Instead of taking weeks to brainstorm and refine ideas, companies can now generate and test multiple creative concepts in a matter of hours.Getting Started with AIFor those looking to explore AI in marketing, the best approach is to start small and experiment with the tools that fit your needs and top priorities.Here are four practical steps:            Ø  Identify one area where AI can help. Whether it’s copywriting, image generation, video                              editing, or consumer research, focus on a single tool first. Ø  Test AI tools that align with your needs. Platforms like ChatGPT, MidJourney, and Descript are great starting points for different marketing functions. Ø  Use AI to enhance creativity and amplify your skills. The best results come from combining AI’s efficiency with human insight and strategy. Ø  Stay updated with AI advancements. The field is evolving rapidly, and keeping up with new AI marketing trends will help you stay competitive. ·       Future of AI in MarketingAI is not just a trend—it is fundamentally transforming how businesses understand consumers, develop marketing strategies, and create products. This, in turn, creates superior value and enhances business performance. The brands leading the way today are proving that AI is an essential tool for innovation, efficiency, and competitive advantage.For professionals looking to advance their careers in marketing, AI proficiency is becoming a must-have skill. Companies now expect marketers to leverage AI-driven insights, optimize campaigns through automation, and think strategically about how technology can enhance business outcomes.If you haven’t started yet, now is the time to embrace AI and stay ahead.About the AuthorFernanda Almada is an AI marketing strategist and coach with over 15 years of experience leading high-impact digital marketing initiatives. She is the founder of FernandaAlmada.ai, where she helps marketers simplify AI and use it effectively to stay ahead of the competition. Fernanda holds an MBA in Marketing from Nova Southeastern University (Class of 2020) and has worked with some of the most forward-thinking brands in digital marketing.To help students and professionals explore AI’s potential in marketing, Fernanda has put together a free guide with 50 AI tools covering content creation, image and video generation, and more. The goal is to identify the best tools for your specific needs. Download your free guide and connect with Fernanda. https://fernandaalmada.ai/50-ai-tools-to-power-up-your-marketing?utm_source=guest-blog-customer-value&utm_medium=organic&utm_campaign=50-ai-tools https://www.linkedin.com/in/fernandaalmadaai/ https://www.instagram.com/fernandaalmada.ai https://www.facebook.com/ai.fernandaalmada https://www.youtube.com/@fernandaalmada-ai

  • Sustainable Growth or Aggressive Transformation? by Rawad Noureddine* [48]
    by noreply@blogger.com (Art Weinstein) on December 2, 2024 at 2:00 am

    In today’s business landscape, the pressure to constantly evolve can be overwhelming. It’s tempting to believe that quick, bold moves—like cutting prices drastically, jumping on every new trend, or making dramatic changes to your strategy—are essential to staying competitive. But, is this constant push really the answer? The reality is, rushing into transformation often comes at a steep price: the quality of your product, the loyalty of your customers, and the very identity of your brand. The Case for Sustainable Growth Sustainable growth offers a more deliberate and thoughtful approach. Rather than responding to every market shift or seeking immediate wins, it focuses on the long-term vision. It’s about laying a solid foundation that will endure. This involves prioritizing quality over speed, nurturing customer trust, and investing in meaningful relationships. While sustainable growth may not generate headlines for instant success, it builds something far more valuable: loyal customers and a respected brand that lasts through time. The Pitfalls of Aggressive Transformation Focusing solely on quick wins can lead to immediate rewards, like increased buzz or sales spikes. However, these short-term fixes can erode the core of your business in subtle ways. 1. Eroding Your Brand Identity Your brand is your unique value proposition, the reason customers choose you over competitors. When you chase fleeting trends, drastically lower prices, or enter new markets without a clear strategy, you risk diluting your brand’s meaning. Example: A luxury skincare company, known for its premium organic products, introduces a budget-friendly line to attract a broader audience. Over time, loyal customers begin to question the brand’s commitment to quality, and the company struggles to maintain its premium image. 2. Alienating Loyal Customers Your loyal customers are your business’s foundation. They come back, spread the word, and often spend more. However, aggressive shifts—like cutting corners or pursuing entirely new audiences—can leave these core customers feeling neglected. Example: A quaint café, loved for its artisanal coffee and cozy atmosphere, switches to a drive-thru model to compete with fast-food chains. Loyal patrons, who appreciated the café’s personal touch, feel abandoned, and the café loses its core following without winning over fast-food customers. 3. Damaging Your Reputation Quick, aggressive decisions often leave little room for careful consideration. This can lead to lapses in quality or service. Customers notice, and once your reputation is tarnished, it’s difficult to repair. Example: An online retailer promises next-day delivery to keep up with competitors, but its logistics system can’t meet the demand. As packages arrive late or go missing, social media buzzes with complaints, and the brand that once represented reliability becomes a cautionary tale. Why Sustainable Growth Prevails Sustainable growth is about building your business in a way that ensures long-term success. It’s not about quick wins; it’s about creating lasting value. Here’s why it works: 1. Protecting Your Brand Value Competing on price alone leads to diminishing returns, where quality often suffers. Sustainable growth focuses on creating value through craftsmanship, innovation, and exceptional customer service. Example: A high-end fashion brand refuses to participate in discount sales, instead doubling down on storytelling and exclusivity. Customers are reminded that its pieces are more than products—they’re investments. As a result, the brand cultivates a loyal customer base that appreciates its integrity. 2. Building Long-Term Loyalty Loyalty isn’t instantaneous, but when customers trust you to consistently meet their expectations, they stick around—and they become your best advocates. Example: A family-owned bakery earns a devoted following by consistently offering fresh, high-quality pastries and making each customer feel valued. Over time, customers not only return, they bring their friends and family. 3. Differentiating Beyond Price If price is the sole factor that sets you apart, you’re in a vulnerable position—there will always be someone willing to undercut you. Sustainable growth highlights what makes your brand unique, whether it’s a superior product, outstanding service, or a compelling story. Example: A mattress company emphasizes its eco-friendly materials and simple buying process instead of competing on the lowest price. Customers are drawn to support a brand that aligns with their values and are happy to pay a premium. The Path to True Success True business success isn’t about chasing quick fixes like slashing prices or jumping on the latest trend. These strategies might get some attention and boost sales for a little while, but they don’t create lasting value or build a solid foundation for the future. In fact, they can hurt your brand by confusing customers, damaging your reputation, and breaking trust. Sustainable growth, on the other hand, takes a bigger-picture approach. It’s about building a brand that’s not just popular today but will continue to grow and thrive in the years to come. Instead of rushing for quick wins, businesses that focus on sustainability build a reputation for being reliable, offering quality products, and keeping their promises. They build strong relationships with customers and focus on creating something that lasts. While this approach might not bring instant results like deep discounts or viral ads, it helps create loyal customers who value the brand for its consistency and authenticity. Over time, this leads to steady profits and long-term success. When you feel tempted to take a shortcut or chase something flashy, it’s important to pause and think it through. Ask yourself: Does this decision fit with the company’s values? Will it help or hurt the brand in the long run? Am I focusing on quick profits or investing in something that will last? Taking the time to reflect on these questions ensures that the choices you make support the long-term vision of your business. Companies that focus on sustainable growth, instead of rushing for quick results, are more likely to handle challenges and stay strong over time. They grow by evolving in thoughtful, meaningful ways, which helps build a loyal customer base and a brand with lasting power. Sustainable growth isn’t the flashiest path, but it’s the one that leads to true, long-lasting success.* Dr. Rawad Noureddine is a visionary, global leader in business development and large-scale project management. This post has been adapted from his new book “From Lead to Loyalty: Mastering Business Growth”. Contact him at: nrawad@hotmail.com or visit his website rawadnoureddine.com 

  • The Extractive Business Model of Fast Fashion: A Colonial Critique by Kanika Meshram * [47]
    by noreply@blogger.com (Art Weinstein) on July 27, 2024 at 1:51 pm

    The concept of value creation revolves around aligning the interests of customers, stakeholders, and the organization itself. A successful business model effectively leverages these values. Central to this framework is the business model canvas, which outlines nine key elements such as customer segments, value proposition, and revenue streams. A robust supply chain, underpinned by strong partnerships, is essential for delivering this value proposition. Fast fashion brands have become adept at responding to market demands through agile business models. However, this speed comes at a significant cost. A voracious appetite for textiles, coupled with declining garment utilization, has severe environmental implications. Furthermore, the industry’s reliance on low-cost labour in the Global South raises ethical concerns. The Fast Fashion Value Proposition: A Disposable Culture Fast fashion brands have revolutionised the clothing industry, offering trendy styles at rock-bottom prices. This seemingly irresistible value proposition, however, comes with a hidden cost. By constantly churning out new designs – Shein adds 2,000 daily [1], Zara produces 500 weekly [2] – fast fashion cultivates a culture of urgency, detachment, and ultimately, disposability towards clothing. This focus on fleeting trends disrespects the craftsmanship and longevity that garments can possess. It fosters customer value in “wear-once-and-discard” proposition that generates mountains of textile waste. The burden of this waste disposal, however, falls far from the trendy wardrobes of the Global North. The fashion industry was built on the promise of cheap labour in the Global East. As wages in developed nations like the UK rose, brands shifted production to countries offering lower costs [3]. This pursuit of profit came at a human cost. To maintain low prices, companies chipped away at garment worker rights, suppressing wages, utilizing exploitative short-term contracts, and creating conditions akin to modern-day slavery. This exploitation has deep colonial roots. The fashion industry frequently leverages state power to stifle labour unions and worker movements in the Global South. They justify these actions by painting a bleak picture – claiming these are the best opportunities available for workers in Global South, who might otherwise face even harsher realities. This logic maintains an exploitative system where Western companies reap vast profits while workers toil in unsafe environments for meagre wages. Reimagining the Business Model: A Call for Responsibilisation Most fast fashion business model doesn’t account for the lifecycle of its products. The responsibility for discarded clothing falls on the consumer, often leading to donation piles that end up in overflowing second-hand markets of the Global South. Places like Ghana’s Kantamanto Market and Kenya’s Gikomba Market become dumping grounds for world’s unwanted clothing[4]. This burden goes beyond logistics. The influx of cheap, trendy garments disrupts local economies in Global South and devalues their traditional clothing craftsmanship. Consumers in developing nations feel pressured to adopt Western styles, further perpetuating colonial power dynamics. So, demand for such types of clothes come from a system of colonialism where western style dresses will get you ahead in life perpetuating the notion of power and white supremacy. The environmental impact is equally staggering. Unsold garments end up in landfills, contributing significantly to the global carbon footprint considering the long journey these clothes take to reach developing countries.  As it turns out, managing this dumped clothing comes at a cost to these countries. For example, the municipal government of Accra, Ghana spends over US $1 million annually on tipping fees for second-hand clothing waste in landfills alone; this includes expenses like fuel, maintenance, and labour. Imagine the burden if the world kept dumping clothes on your doorstep and your tax money was used to clean it up! As the Figure illustrates, I utilized the H&M business model as a framework to illustrate how the model can be adapted to prioritize clothing circulation over landfill disposal. My suggestions are preliminary and do not comprehensively address the complexities of the issue, particularly the relentless pursuit of new styles. To shift the business model from an extractive, colonial approach to a more responsible operating model, three key areas for improvement are proposed. Product Take-Back Programs: Retailers can partner with other stores or supply chains to collect used clothes. E-commerce platforms can inform customers about these drop-off points. Incentives can be offered to encourage participation. Rewear and Upcycle: Brands can offer repair services for damaged clothing, extending their lifespan. Vintage sections in stores can give pre-loved clothes a new lease on life driving product extensions. Repurposing and Recycling: Unsold clothes can be creatively transformed into packaging materials, cleaning cloths, or even new clothing lines. This requires collaboration with suppliers in the Global South to develop innovative recycling techniques.__________________________________________________________________________[1] https://www.gittemary.com/2022/07/shein-is-much-worse-than-any-other-fashion-brand-here-is-why.html#:~:text=Shein%20reportedly%20adds%20over%202%2C000,%2Dday%20period%2C%20for%20comparison.[2] https://www.thefashionlaw.com/fast-fashion-sustainability-is-about-more-than-the-fabrics/#:~:text=As%20the%20largest%20fast%20fashion,20%2C000%20different%20styles%20a%20year.[3] https://www.amazon.com.au/Consumed-Collective-Colonialism-Climate-Consumerism/dp/1538709848[4] https://earthyroute.com/blogs/slow-fashion-series/4-places-where-our-clothes-end-up-when-they-are-discarded * Dr. Kanika Meshram is a Lecturer in Management and Marketing at the University of Melbourne. She may be reached at kanika.meshram@unimelb.edu.au. Note: the inspiration for this blog comes from Aja Barber’s book, Consumed the Need for Collective Change: Colonialism, Climate Change and Consumerism. Read Professor Meshram’s other posts on customer centricity [43, 31].  

One thought on “Customer Value in the Now Economy”

  1. admin says:

    Good theme !

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